Accidental Damage Insurance

What happens if the Resident accidentally damages my property? We require residents to carry accidental damage insurance. The purpose of this coverage is to repair the property in case the resident accidentally damages the property. This coverage is not meant to replace the required property and liability insurance that the owner carries on the property. The purpose is to help the tenant pay for damages they cause to the property. For example, if the tenant starts a grease fire that causes some smoke damage and some damage to a counter-top, this insurance would cover the cost of the repair. Currently the coverage is up to $100,000 with a zero dollar deductible to the tenant. The benefit to the owner is that the owner doesn’t have to place a claim on their property insurance. No claim means no premium increase next year because of the claim. The benefit to the tenant is no out of pocket expense to pay for the repair. In some cases the tenant will purchase renter’s insurance with different coverage and limits. We will accept that coverage as sufficient.